New York Superintendent of Insurance, Eric Dinallo, recently revealed that the New York State Insurance Department is working “avidly” to alleviate the capital crisis at bond insurer FGIC.  FGIC was the subject of ratings downgrades by both Fitch Ratings and S&P earlier this year.  If no infusion of capital is forthcoming, regulators fear that the company could go into run-off.  “It has to get resolved pretty soon because, otherwise, they’re just going to slip into lower and lower downgrades,” Dinallo said.  FGIC was one of the first bond insurers to face downgraded ratings as a result of the issues with the sub-prime market.  Other bond insurers such as MBIA and AMBAC have been forced to raise capital in order to keep their AAA ratings.  MBIA, however, recently had its rating downgraded by Fitch.  Click here to read about MBIA’s ratings downgrade.